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Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following. Available-for-Sale...

Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.

Available-for-Sale Securities Cost Fair Value
Company A bonds $ 531,500 $ 495,000
Company B notes 159,040 145,000
Company C bonds 663,000 641,100


Stoll enters into the following transactions involving its available-for-sale debt securities this year.

Jan. 29 Sold one-half of the Company B notes for $78,200.
July 6 Purchased bonds of Company X for $120,700.
Nov. 13 Purchased notes of Company Z for $268,000.
Dec. 9 Sold all of the bonds of Company A for $515,200.


The fair values at December 31 are B, $83,500; C, $605,700; X, $108,000; and Z, $280,000.

1. Prepare journal entries to record these transactions, including the December 31 adjusting entry to record the fair value adjustment for the long-term investments in available-for-sale securities.
2. Determine the amount Stoll reports on its December 31 balance sheet for its long-term investments in available-for-sale securities.

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